Defendants and appellants, Knight Sacramento SU Inc., et al. (Knight), are California corporations operating car dealerships throughout the state. Plaintiff and respondent, Michelle Phan (Phan), was intermittently employed by Elk Grove Subaru (Subaru) and Elk Grove Volkswagen (Volkswagen) between 2022 and 2024. In 2024, Phan filed wage and hour claims against Knight in both her individual capacity and on behalf of a class of current and former employees of Knight. Phan demanded a jury trial.
Relying on the arbitration agreements signed by Phan during her employment, Knight moved to compel arbitration of Phan’s claims, or alternatively, to sever any invalid terms and enforce the remainder of the agreements. Relying on Cook v. University of Southern California (2024) 102 Cal.App.5th 312 (Cook), the trial court denied the motion, finding that the arbitration agreements were both procedurally and substantively unconscionable and therefore unenforceable. The court also declined to sever the unconscionable terms.
Knight appeals and argues that the trial court incorrectly applied Cook, and in any event, Cook is distinguishable. Knight also asks this Court to decline to follow the Cook decision.
We affirm the trial court’s order.
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